| UK Property Buyers Look Closer To Home Again: France, the traditional holiday home favourite |
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UK Property Buyers Look Closer To Home Again: France, the traditional holiday home favourite, has seen a resurgence in popularity in recent months as travel has become more expensive and buyers have started looking away from the emerging markets. PRLog (Press Release) – Nov 21, 2008 – Overseas property buyers have changed in the last year - this time 12 months ago, much of the focus of the marketing, the press and the buying public was on the investment potential of overseas property. Ordinary people were being encouraged to make the most of the savings they had and put them into properties to rent out, or to flip before completion and make a profit; putting them alongside 'professional' investors in owning properties that they were unlikely ever to want to use themselves. The onset of the credit crunch, among other things, has put paid to much of this investment-driven development, leading to the overseas property market taking a very different shape. In many ways, the market has now returned to what it originally was - people buying properties in countries they love in order to make the most of for themselves, and possibly rent out for part of the year. France has naturally been one of the major beneficiaries of this shift in the market - its proximity to the UK reassures buyers in these uncertain economic times, and it remains in the very top echelon of worldwide tourist destinations. This allows buyers to visit more often than they might if their property overseas is in a more distant destination, while still giving reassurance that the rental prospects for short-term lets to tourists are good. There are a number of other reasons that France has grown in popularity in recent months. The French government has been a large-scale supporter of the purchase of holiday homes through its leaseback scheme for many years now. This guarantees a rental income for those who buy in designated tourist areas and agree to rent their property out for the majority of the year, providing much-needed tourist beds in the most over-subscribed destinations. The travel industry has undergone massive changes this year. Oil prices have fluctuated in a way not seen for many years, reaching $140 per barrel earlier in 2008, and since crashing to around $55 at the time of writing. However, this drop in the price of fuel, despite it being one of the biggest elements of any air fare, has not led to a significant drop in the price of tickets to many destinations. While there is a need for airlines to fill the seats they have on scheduled services, they have also managed to maintain price levels. The renewed strength of the US Dollar against Sterling has been partly responsible, as has the fact that some budget airlines have gone into administration, reducing competition on many routes. The options for travelling to France are also a cause of its strength in the overseas property market. With the possibility to fly, drive or even catch the train to all major cities in France, property owners are not beholden to the scheduling whims and price structures of the low-cost airlines. Travelling by train in France is a much less stressful experience than in the UK - I would recommend to anyone taking the TGV across the country as a relaxing way to travel. It is also possibly the greenest way to get to a property overseas that you could find. France is also beginning to attract more attention from those who put green issues and sustainability high on their list of priorities when looking for a property overseas. One side of this is that the country produces a huge proportion of its power from carbon-neutral sources, though many in the UK are still uncomfortable with the extensive use of nuclear power stations to produce electricity. |
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